Basis propped up as futures slide continues

Both corn and soybean futures continued to slide lower this past week, shaving 75 cents per bushel or more off corn and a $1.60 off of bean futures prices. Basis levels helped soften the blow, but ever so slightly as corn basis was up 3 cents a bushel on average while soybean basis climbed 4 cents on average this past week.

Most of the strength in basis levels was away from the river system this past week. Although barge rates have come down after flood-levels subsided, export business has slowed substantially for old-crop corn and beans, putting pressure on Gulf export basis levels. Both corn and bean basis were lower at the Gulf this past week, with soybean basis off over 15 cents a bushel.

Regionally, corn basis improved in parts of Iowa and Missouri, while parts of Minnesota, South Dakota and Wisconsin also posted larger improvements than the rest of the country. Southern sections of the country saw corn basis hold steady or dip slightly.

For soybeans, basis levels were weaker along the river thanks to steep losses in basis at the Gulf. However, areas not impacted by the river so gains of 4 cents or more. Especially in the Eastern Cornbelt of Indiana and Ohio basis levels jumped higher as processors in these states aggressively bid up basis. Some key processors were up 15 cents on basis for the week.

Both corn and soybean futures continued to slide lower this past week, shaving 75 cents per bushel or more off corn and a $1.60 off of bean futures prices. Basis levels helped soften the blow, but ever so slightly as corn basis was up 3 cents a bushel on average while soybean basis climbed 4 cents on average this past week.